Smucker Company: sells »Voortman« to CapVest Partners

Orrville / OH. (sc) The J. M. Smucker Company announced it has entered into a definitive agreement to sell its »Voortman« cookie brand to Second Nature Brands, a U.S.-based creator of premium snacks and treats controlled by CapVest Partners LLP. The all-cash transaction is valued at approximately USD 305 million, subject to a working capital adjustment. The decision reflects the Company’s continued commitment to optimize its portfolio and reallocate resources to its core growth brands.

The transaction includes all »Voortman« trademarks and the Company’s leased manufacturing facility in Burlington, Ontario, Canada. In addition, approximately 300 employees will transition with the business.

«This decision reflects our continued commitment to portfolio and resource optimization to focus on our largest growth opportunities as a Company,» said Mark Smucker, Chair of the Board, President and Chief Executive Officer. «The divestiture of the »Voortman« brand is an important step in our integration plans that will enable the execution of our Sweet Baked Snacks strategy through dedicated focus and ongoing investments in the Hostess® brand, advancing our leadership in the sweet baked goods category. I want to recognize and thank the many talented teams who have supported this brand.»

The Company also confirmed continued progress on the integration of Hostess Brands, including the successful completion of systems integration earlier this month, and that it remains on track to achieve expected synergies of USD 100 million from the acquisition by the end of fiscal year 2026.

The »Voortman« brand generated net sales of approximately USD 65 million for the Company’s fiscal year ended April 30, 2024, which represents a partial year of net sales reported in its Sweet Baked Snacks segment results following its acquisition on November 07, 2023. For fiscal year 2025, the Company anticipates full-year net sales from the »Voortman« brand to be approximately USD 150 million.

The Company expects the divestiture to be dilutive to its adjusted earnings per share by approximately USD 0.25 on a full-year basis, reflecting the foregone profit related to the »Voortman« brand and before factoring in any benefits from the use of transaction proceeds. The Company anticipates using the net proceeds from the transaction to pay down debt, which will contribute an earnings per share benefit of approximately USD 0.10 on a full-year basis. The Company will further discuss the transaction’s impact on its fiscal year 2025 outlook when it releases its second quarter results.

The transaction is anticipated to close in the third quarter of the Company’s current fiscal year ending April 30, 2025, subject to customary closing conditions including the receipt of required regulatory approvals. Goldman Sachs + Co., LLC is serving as the Company’s financial advisor, and Blake, Cassels + Graydon LLP is serving as the Company’s legal advisor in connection with the transaction.